MF Global Files For Bankruptcy After Bad Bets On European Debt
MF Global Files For Bankruptcy After Bad Bets On European Debt, The Wall Street firm run by former Goldman Sachs Chairman and New Jersey Gov. Jon Corzine filed for bankruptcy Monday morning, making it the first big American casualty of the European debt crisis.
The firm, MF Global Holdings Ltd., had come under increasing strain in recent weeks due to $6.3 billion in outstanding bets on the sovereign debt of some of Europe’s most troubled economies, including Spain and Italy.
Last week the European Union announced a plan to help prop up the economies of its weaker members, but the plan will not insulate financial institutions like MF Global from losses on holdings of European sovereign debt. In early October a large Belgian bank was rescued from bankruptcy after sustaining big losses on such holdings.